TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE JUNE - DECEMBER 2016
ABOUT THIS GUIDE Chandler Macleod’s Employment Market Updates provide insight on job market conditions, permanent and contract pay rates and employment trends. Information for this guide has been provided by Chandler Macleod recruitment consultants, candidates, clients and other sources. With years of local knowledge and experience in their respective areas of expertise, our specialist recruiters have a deep understanding of their market, the roles they recruit and current pay rates. All salary ranges and contract rates are approximate guides only. While the salary ranges listed are current at the time of publication, we are seeing increasing variations of market rates as the number of organisations basing pay rates on specific circumstances increases and mining roles continue to offer higher rates. We acknowledge significant changes and transformation in the economy and labour market which is reflected in our research and variances in the permanent and temporary data. Salary and pay rate data is influenced by a number of factors and we always recommend working with a specialist recruiter to conduct a thorough job and market analysis. The permanent salaries listed are base salaries only and do not include superannuation, bonuses, incentive schemes or other benefits. The temporary rates listed are the rate paid to the contractor and do not include superannuation, management fees, incentive schemes or other benefits or fees. Roles marked N/A indicate insufficient data to represent the market adequately, please contact our consultants for further information about these roles.
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TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE
NATIONAL MARKET UPDATE Nationally, the trades and technical job market has been affected by continued downturn in the mining and heavy construction sectors, with both sectors reducing their workforces. Cost reduction is driving these sectors with job losses and wage reductions occurring across the country. We are also seeing an increased use of labour hire throughout the mining sector as companies look to lower staff costs. We expect the market to continue to manage cost pressure through staff and wage reductions due to ongoing uncertainty across international commodity markets. This is evidenced by the recent appointment of administrators to Arrium in Australia and the Chapter 11 filing of Peabody in the US. In contrast, the residential and commercial construction sector is experiencing growth and remains reasonably buoyant across East Coast capital cities, particularly in the greater Brisbane area. Bucking the trend, this sector continues to generate job growth, predominantly for qualified trades with construction experience and transferable skills. While interest rates remain at historic lows we expect to see the residential and commercial construction sector to stay reasonably strong. As employer preference for contingent workforces rises the trades and technical job market is characterised by a lack of long term or permanent contracts resulting in high competition for roles offering job security. We are seeing a lack of investment in apprenticeships and anticipate skills shortages as the generational shift is realised and Baby Boomers retire.
NEW SOUTH WALES The New South Wales job market is being characterised by demand for experienced trades in the manufacturing, civil and infrastructure sectors, and continued mining downturn. Despite the decrease in mining vacancies these roles are still favoured by job seekers due to the higher pay rates, overtime and job security. We are seeing a shortage of quality candidates in the manufacturing industry due to the uncertainty of the sector, with candidates not willing to risk leaving stable jobs as more and more manufacturing moves offshore. Crane Operators, Welders and candidates with infrastructure experience are in high demand, with shortages of qualified Sheet Metal Workers, Carpenters, Plumbers and Refrigeration Mechanics also experienced. In Sydney, the Northwest Rail Link, WestConnex and NorthConnex infrastructure projects, and the development of residential estates in Western Sydney are engaging a large proportion of the skilled workforce. These projects will continue to influence the market and drive talent shortages in civil and infrastructure. Moving into the second half of the year we expect the job seeker market to remain steady with areas of high demand impacting the availability of talent. Employers should consider offering permanent employment where possible and develop talent attraction strategies to secure top talent.
JUNE - DECEMBER 2016
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VICTORIA In Victoria, the decline of manufacturing continues to have a significant impact on both the metro and regional job markets. Recent and upcoming factory closures are driving an increase in the availability of skilled trades with manufacturing expertise. Despite a scarcity of permanent roles, Maintenance Fitters and Electricians with high speed manufacturing experience are well regarded with a strong talent market increasing competition for these roles. In Melbourne, demand for quality candidates remains steady across construction and infrastructure with a number of large projects, such as the Western Distributor and Monash Freeway Upgrade, on the horizon. The Murray Basin Rail Project continues in regional Victoria with the next stage, due to commence in coming months, set to create up to 300 jobs. Employer confidence is growing with the recent Federal Budget reallocating $1.5 billion of funding, previously ear-marked for the East West Link, to a number of other massive road and rail infrastructure projects. Candidates are favouring organisations offering above market wages and long term or permanent contracts. While the mixed job market largely favours employers and job vacancies often attracting a high number of quality applicants, employers should be working on retaining top performers.
QUEENSLAND In Queensland, decline in mining and industrial construction has seen a decrease in job numbers over the last 12 months, and moves by companies to lower costs has seen an increased use of labour hire in some areas. Market pay rates and salaries are also being driven down to levels previously seen before the mining boom. In Brisbane we are seeing growth in residential and commercial construction (two storeys and above) with a large number of development approvals for mixed residential/ commercial projects from inner city to outer suburbs, including the Gold Coast. This is driving demand for Electricians, Carpenters, Plumbers, Riggers, Scaffolders and Trades Assistants with recent residential construction experience. Candidates with transferable skills, such as Working at Heights and Asbestos tickets, are highly sought after due to the volume of two+ storey construction projects. Employers are navigating an experience gap on the Gold Coast after a previously quiet residential market saw talent transition to other markets during the mining and construction boom. With a shortage of construction candidates we are seeing high demand for qualified tradespeople with recent residential experience. Moving down from the mining boom in regional centres and transitioning to residential construction growth in the South-East, Queensland candidates are seeking employers that can offer security through longer term projects or permanent jobs.
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TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE
WESTERN AUSTRALIA The employment market in Western Australia has largely been impacted by the decline in the mining industry and mining-related construction projects. We continue to see a preference for flexible temporary workforces and expect to see more temporary/casual jobs available rather than long term/permanent jobs. Across the state we are seeing high demand for Boilermaker/Welders and Pipefitters with Alloy experience, compounded by a shortage of candidates with appropriate experience. FIFO and DIDO roles offer additional benefits and are popular with applicants, however due to a shortage of jobs most candidates are willing to consider all opportunities. With job growth expected to remain static across all trades, the supply of talent will continue to exceed job vacancies. We encourage employers to design recruitment strategies to identify applicants that will best fit the role, culture and organisation.
SOUTH AUSTRALIA The completion of several large construction projects and the declining manufacturing industry has greatly impacted the South Australian employment market. We are seeing a number of organisations looking to downsize or re-configure their workforce over the next 6 months and expect this to result in an increase in the number of temporary/casual jobs on offer. Across the state the closure of many manufacturing factories and looming closure of Holden and its suppliers is driving candidates back to the job market in search of security. This is causing an excess of trades candidates in the marketplace, particularly with manufacturing skillsets. We are seeing demand for Engineers with mining or project experience being driven by the expansion of Olympic Dam – which will have a long term positive impact on the local job market. A number of other current and future projects, including the Darlington Upgrade and several newly announced ASC Defence contracts, have the potential to ease current market conditions. Employers with looming projects are advised to communicate volume staffing requirements with recruiters ahead of schedule to allow time for recruiting and onboarding processes. With a high number of job seekers in the market employers can afford to be picky to ensure the best applicants are selected. In a highly competitive job market candidates need to be able to stand out from the crowd and clearly communicate their strengths.
JUNE - DECEMBER 2016
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PERMANENT
SALARY GUIDE
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NSW
VIC
QLD
WA
SA
TRADES
$’000
$’000
$’000
$’000
$’000
Trades Assistant
40 - 70
40 - 60
35 - 75
45 - 75
40 - 80
Scaffolders
60 - 70
N/A
45 - 80
65 - 95
45 - 100
Riggers
60 - 70
N/A
45 - 80
60 - 95
45 - 100
Crane Operators
45 - 70
N/A
45 - 75
65 - 100
45 - 110
Toolmaker
50 - 70
50 - 80
50 - 80
65 - 100
50 - 65
Sheet Metal Worker
50 - 75
45 - 80
50 - 100
65 - 100
55 - 110
Electrical Instrumentation Technician
40 - 90
65 - 100
50 - 80
65 - 85
60 - 120
Coded Welder
40 - 90
50 - 70
50 - 80
60 - 100
60 - 120
Pipefitter
45 - 80
45 - 80
50 - 80
65 - 100
55 - 120
Plumber
45 - 90
50 - 90
50 - 70
65 - 100
55 - 110
Carpenter
50 - 90
45 - 80
50 - 80
65 - 100
40 - 100
Boilermaker
50 - 80
50 - 100
50 - 95
65 - 110
55 - 120
Heavy Duty Fitter
50 - 90
50 - 100
50 - 80
65 - 110
55 - 100
Maintenance Fitter
60 - 75
50 - 100
50 - 80
65 - 100
55 - 120
Electrician
65 - 80
65 - 110
50 - 90
65 - 100
60 - 120
Refrigeration Mechanic
65 - 75
50 - 90
60 - 90
70 - 100
55 - 110
TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE
PERMANENT
SALARY GUIDE NSW
VIC
QLD
WA
SA
TECHNICAL
$’000
$’000
$’000
$’000
$’000
Draftsperson
65 - 75
N/A
70 - 110
70 - 100
60 - 110
Maintenance Planner
60 - 120
50 - 100
80 - 120
80 - 155
60 - 130
Civil Engineer
70 - 150
N/A
70 - 160
95 - 180
90 - 160
Electrical Engineer
70 - 160
90 - 140
80 - 180
95 - 150
90 - 160
Mechanical Engineer
60 - 120
N/A
70 - 140
95 - 150
90 - 160
Chemical Engineer
90 - 140
N/A
70 - 150
95 – 155
90 - 160
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TEMPORARY
SALARY GUIDE
8
NSW
VIC
QLD
WA
SA
TRADES
HOURLY
HOURLY
HOURLY
HOURLY
HOURLY
Trades Assistant
25 - 40
25 - 35
20 - 50
20 - 45
25 - 40
Scaffolders
30 - 40
N/A
25 - 50
30 - 65
30 - 45
Riggers
30 - 40
N/A
25 - 50
30 - 65
30 - 45
Crane Operators
30 - 45
N/A
25 - 50
40 - 70
30 - 50
Toolmaker
30 - 40
30 - 40
30 - 50
35 - 55
30 - 35
Sheet Metal Worker
35 - 45
30 - 40
30 - 65
30 - 60
30 - 50
Electrical Instrumentation Technician
25 - 50
35 - 80
30 - 50
40 - 80
40 - 60
Coded Welder
35 - 60
N/A
30 - 50
35 - 60
35 - 55
Pipefitter
35 - 45
30 - 40
30 - 50
35 - 60
30 - 50
Plumber
30 - 50
30 - 45
30 - 45
40 - 65
35 - 50
Carpenter
25 - 55
25 - 40
30 - 50
35 - 55
30 - 45
Boilermaker
30 - 45
32 - 50
30 - 60
30 - 60
30 - 50
Heavy Duty Fitter
30 - 50
35 - 50
30 - 50
35 - 60
30 - 50
Maintenance Fitter
30 - 45
32 - 45
30 - 50
30 - 60
30 - 50
Electrician
30 - 60
35 - 60
30 - 60
35 - 75
35 - 60
Refrigeration Mechanic
35 - 45
30 - 45
35 - 55
45 - 60
35 - 50
TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE
TEMPORARY
SALARY GUIDE NSW
VIC
QLD
WA
SA
TECHNICAL
HOURLY
HOURLY
HOURLY
HOURLY
HOURLY
Draftsperson
60 - 65
N/A
45 - 70
50 - 100
35 - 50
Maintenance Planner
35 - 70
30 - 45
50 - 75
55 - 110
40 - 55
Civil Engineer
45 - 90
N/A
45 - 90
60 - 100
50 - 70
Electrical Engineer
40 - 90
55 - 75
50 - 115
75 - 135
50 - 70
Mechanical Engineer
50 - 80
50 - 75
45 - 90
65 - 105
50 - 70
Chemical Engineer
60 - 100
N/A
45 - 95
75 - 135
50 - 70
JUNE - DECEMBER 2016
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ABOUT US Chandler Macleod’s Staffing Services team has been supplying Australian businesses with specialised recruitment and HR services since 1959. Our experienced recruitment teams source, recruit and manage temporary, contract and permanent employees across a broad range of sectors. We are proud to supply tailored HR solutions to many of the region’s largest organisations, Government departments and not-for-profits. At the core of our recruitment and selection process is our BestFit™ formula, which states that a person’s behaviour is a function of who they are, their skills and temperament, combined with the environment in which they work. We employ a range of leading edge appraisal tools, assessments and methodologies to find the candidate who is the BestFit™ for the position, team and organisation.
25 MILLION HOURS WORKED BY CMG EMPLOYEES IN 2015
1655
SAFETY ASSESSMENTS CONDUCTED IN 2015
SAFETY IS ALWAYS OUR FIRST PRIORITY
1,417
INDIGENOUS AUSTRALIANS PLACED OVER THE LAST 3 YEARS
286,000 CANDIDATE JOB APPLICATIONS RECEIVED IN 2015
57 YEAR HERITAGE AND THE
WORLDS 5TH LARGEST
RECRUITMENT ORGANISATION
ONE OF AUSTRALIA’S LARGEST EMPLOYERS OF
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Our specialist recruitment teams have demonstrated expertise across a variety of specialisations, including:
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Accounting & Finance
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IT
Construction
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TRADES & TECHNICAL EMPLOYMENT MARKET UPDATE
This publication has been produced by Chandler Macleod Group as general information only and does not consider anyone’s specific objectives, situation or needs. Accordingly, the publication is not to be taken as legal or professional advice. We recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this paper. Neither the authors nor Chandler Macleod Group accept any duty of care or liability to anyone regarding this publication or any loss suffered in connection with the use of this publication or any of its content. Chandler Macleod, Unleashing Potential and our logo are trademarks of Chandler Macleod Group Limited and must not be used without the prior, specific, written permission of Chandler Macleod Group. All rights reserved.
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